Oil jumps 3% to above $90 after flare-up in U.S.-Iran hostilities
Oil prices rose over 3% following a military clash between U.S. forces and Iran near the Strait of Hormuz. The escalation has heightened concerns regarding global energy supply security as tensions in the Middle East continue to intensify.
Why it matters
The conflict threatens a critical global energy chokepoint, potentially leading to increased fuel costs and broader economic instability.
Oil prices jumped Monday after U.S. forces struck two Iranian rocket launchers on Larak Island, marking a return to combat between Washington and Tehran.
Futures for international benchmark Brent crude for September delivery gained 3.3% to trade at $90.99 a barrel. Front-month U.S. West Texas Intermediate futures added 3.6%, trading at $86.36 per barrel.
Crude oil futures "I can confirm that earlier today U.S. forces struck two Iranian launchers on Larak Island. Islamic Revolutionary Guard Corps forces were observed preparing to launch rockets with sea mines into the Strait of Hormuz," Navy Capt. Tim Hawkins, a U.S. Central Command spokesperson, said in a statement.
According to the Associated Press, Sunday's attack was the first publicly acknowledged U.S. strike on Iranian positions since late July.
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